Final answer:
The valuation of an MNC should rise when expected cash flows from foreign subsidiaries increase and the foreign currencies they are denominated in are expected to appreciate. Option 4.
Step-by-step explanation:
The valuation of a multinational corporation (MNC) should rise when an event causes the expected cash flows from foreign subsidiaries to increase and when the foreign currencies denoting these cash flows are expected to appreciate. This implies that the second option is correct. An increase in the cash flows suggests that the subsidiaries are generating more income, which enhances the value of the MNC. Furthermore, when the currencies in which these cash flows are denominated are expected to appreciate, the value of the cash inflows in terms of the MNC's home currency increases, further enhancing the MNC's valuation.